Major indexes closed near session highs Thursday as indexes held most of their afternoon gains. Nvidia cleared the 50-day moving average as it extends a rebound amid remarks from CEO Jensen Huang and analysts at Bernstein.
The Dow Jones Industrial Average reversed higher to close 0.6% higher. The index rebounded from the 50-day moving average on Wednesday. The S&P 500 finished nearly 0.8% higher in the stock market today. The Nasdaq rose 1% and, in a notable move, closed back above the 50-day line.
Volume on the NYSE and the Nasdaq was lower compared with the same time on Wednesday but advancers led more than 3-to-1 on the NYSE and nearly 2-to-1 on the Nasdaq.
The small-cap Russell 2000 rose 1.2% while the Innovator IBD 50 ETF outperformed with a 1.5% gain.
The yield on the benchmark 10-year Treasury note rose nearly three basis points to 3.68%.
ADRs of RELX broke out of a cup with handle with a buy point of 47.31. The British company provides information and analytics for professionals and businesses and has a record of steady sales and earnings growth over the past eight quarters.
1:54 p.m. ET
Cathie Wood Sells AI Play
Two stocks triggered sell signals. Lazard, in the investment banks and brokers group, fell below the 50-day moving average. Shares tried to get back to that level in late trades.
In retail, Caleres plunged below the 200-day moving average in heavy volume. The footwear company missed July-quarter expectations and cut its guidance, citing slower demand.
Elsewhere, Cathie Wood's Ark Innovation ETF sold 184,000 shares of software maker Palantir. Palantir, which is a play on artificial intelligence, has gained 100% year to date. Shares are just past a profit zone from a buy point of 27.50.
12:16 p.m. ET
Two Stocks In Growth 250 Break Out
In the IBD MarketSurge Growth 250, Veeva Systems broke out of a cup with handle at a buy point of 224.71 before reversing lower. Veeva Systems ranks first in the medical software industry group.
HA Sustainable Infrastructure Capital is trying to get above a buy point of 34 in a cup-without-handle base. The company provides equity, joint ventures, real estate and other financing methods to facilitate the transition to alternative energy.
10:44 a.m. ET
Producer Price Index Mostly As Expected
The Producer Price Index for August increased 0.2% month on month, meeting consensus views. The data follows the Consumer Price Index for August, which showed that core inflation ran slightly hotter than expected in August.
However, on an annual basis, inflation cooled as producers saw price increases narrowing to 1.7% vs. forecasts of 1.8%. After Thursday's inflation report, traders were betting on an 85% chance of a 25-basis-point rate cut next week at the Fed's policy meeting. The odds of a jumbo rate cut of 50 basis points was just 15%, according to the CME FedWatch Tool.
Initial jobless claims also met economists' estimates and rose to 230,000 from 227,000 for the week ended Sept. 7, according to Econoday.
Futures: Nvidia Leads 7 New Buys, Market Flashes Bullish Signs
Dow Jones Stocks
Tech stock Intel reversed lower while Apple attempted to get back to the 50-day moving average after falling below it on Monday. Salesforce climbed 1.6%.
Among the Dow retailers, Amazon.com and Walmart made gains. Walmart hit an all time high despite a fractional gain.
Moving outside the Dow, Moderna plunged 12% after reports that disappointing vaccine sales are hurting the company's research and development efforts. The company plans to cut its R&D budget by 20% over three years. Moderna reported losses in the two most recent quarters. IBD MarketSurge shows the stock has been in a downtrend since June.
Earnings moved retail stock Kroger, which bounced from the 200 day moving average after it reported fiscal second-quarter earnings of 93 cents, which beat views of 91 cents, on sales of $33.9 billion. Sales missed the target of $34.1 billion, however.
Magnificent Seven stock Nvidia rose to add to a three-day rally. Shares are climbing past the 50-day moving average after a 14% fall last week.
Analyst Stacy Rasgon at Bernstein said Thursday that "the numbers are so good (and moving so high, so fast) that investors worry about sustainability. ... However, the time to worry is clearly not now." On Wednesday, CEO Jensen Huang said that the return on investment for AI infrastructure remained strong.
Nvidia is on IBD Leaderboard and IBD 50.
Among other AI plays, Adobe fell in after hours trading after third quarter results. Sales of $5.4 billion increased 11% from the prior year. Earnings of $4.65 per share rose 14%. The company gave a sales outlook of $5.53 billion at the midpoint for the current quarter with earnings of $4.66 per share, lower than analyst views of $4.67 per share earnings on sales of $5.6 billion.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
